What is a Renaissance Zone?
In Grand Rapids, Renaissance Zones, are distressed and blighted areas which are virtually tax free for businesses or residents presently in, or moving into, a Zone. Most of the property in the Renaissance Zone is zoned commercial. A very few of the properties are zoned residential.
How long do Renaissance Zone benefits last?
The Renaissance Zone designation began on January 1, 1997, and lasts for fifteen years. If a business moves into the Zone in the year 2003, they have nine years of benefits remaining.
The final three years of the Zone will begin a phase-in of taxation. For example, in the year 2009 a business will pay 25% of their tax liability, 50% in the year 2010, 75% in the year 2011, and 100% after 2011.
In 2002 the State allowed four new Renaissance Zone districts to be created. The four new districts are Monroe Center (Zone 7), Terra-Firma (Zone 8), A-Tek (Zone 9) and Metropolitan Hospital (Zone 10). The tax benefit for these four districts began January 1, 2003 and will expire December 31, 2017. In the final three years of these Zones a phase-in of taxation will occur. For examples, a business will pay 25% of tax liability in 2015, 50% in 2016, 75% in the year 2017, and 100% in 2018.
How does one qualify for Renaissance Zone benefits?
In order to receive the tax benefits, businesses and residents residing in the Renaissance Zones must also do the following:
- Not be delinquent in any state or local taxes abated by the Renaissance Zone law.
- Businesses must file an annual Michigan Single Business Tax Return, as well as an annual City Income Tax Return using their appropriate schedules.
- Businesses also need to file an annual City of Grand Rapids Personal Property Statement and a Renaissance Zone Report Form for each property located within the Renaissance Zone. These forms may be obtained by calling 456-3089.